2001March 20: Reduced electricity imports from
the Pacific Northwest, power plants offline for repairs and higher-than-expected demand
because of warm temperatures caused state power managers to order rolling blackouts across
California for a second straight day today as demand for electricity again exceeded
supply.

March 16: The
state budget committee will deny further requests for funds to buy electricity, unless
state regulators immediately devise a means by which the Department of Water Resources can
recover the money. A letter state Sen. Steve Peace sent to state Department of Finance
Director Tim Gage, went on to say the committee is "concerned about the prospect of
continuing to approve deficiency requests for electricity purchases...in the absence of
any discernible progress by the California Public Utilities Commission to provide for the
recovery of these funds."

March 15:
Today, the Bush administration warned that electricity blackouts in California this
summer, "appear to be inevitable." Testifying before a Senate hearing on price
control legislation, Energy Secretary Spencer Abraham said, "Any action we take must
either help increase supply or reduce demand. Price caps will neither
increase supply nor reduce demand."

March 13:
Gov. Gray Davis unveils the "20/20 program," a $90-million conservation program
that will give customers of the state's three private utilities 20% rebates on their
summer electricity bills if they reduce consumption by 20%.

March 9:
Federal regulators say that prices charged by electricity wholesalers during the month of
January appear to be "unjust and unreasonable." After reviewing power
transactions for the month, FERC gave 11 firms and 2 exchanges until March 23 to provide
documents justifying their prices or to refund $69 million.

March 7:California's
Public Utilities Commission voted today to grant the state Department of Water Resources
authority to seek rate hikes. The DWR has been spending approximately $45 million per day
to purchase electricity, after suppliers refused to sell to nearly bankrupt PG&E and
So Cal Edison. Today's vote opens the door to potential rate increases above 19%.

March 5:
California's Department of Water Resources has agreed to purchase approximately $ 4
billion worth of electricity over a 9 year period from Duke Energy of Charlotte, NC. Duke,
joins Calpine of San Jose, CA and Williams of Tulsa, OK as independent suppliers of
electricity through long - term contracts signed with the DWR.

Feb. 26: Gov.
Davis announced an agreement in principle with Southern California Edison to buy its
transmission lines for $2.7 billion. The plan would require the parent company, Edison
International, to pay SoCal Edison $420 million. Edison would also be required to sell
electricity produced by its power plants to the state at near cost for the next 10 years.

Feb. 21: FERC
upheld a January 12th order allowing PG&E Corp. to restructure its holdings
to insulate its competitive business from the difficulties facing its regulated utility
unit, Pacific Gas and Electric Co.

Feb. 19: The
Stage 3 alert was downgraded to Stage 2 over the weekend.

Feb. 13:
California extends the Stage 3 alert for the 30th consecutive day and a three
bill package by the Senate's Energy, Utilities and Communications Committee, passes its
first test before lawmakers. The legislation would authorize negotiations for a state
takeover of electricity transmission lines, create a state power authority, and spend more
than $1 billion on energy generation and conservation incentives.

Feb. 12:U.
S. District Judge Ronald S.W. Lew denied Southern California Edison's request for a
federal court injunction that would have immediately allowed it to begin recovering
billions of dollars spent for wholesale power since last summer. If granted, Edison could
have raised electricity rates 15% over three years, and could have recovered $2.5 billion
in costs.

Feb. 9: U.S.
District Judge Frank C. Damrell extended a temporary restraining order he issued Tuesday
ensures the suppliers will not pull about 4,000 megawatts off the state's power grid.

Feb. 8: Gov.
Gray Davis issues an emergency order to create an abridged permitting process for power
plant builders that will dramatically increase the amount of available energy in the
state. Davis announced that the new plants will provide enough electricity to ward off
blackouts this summer.

Feb. 1: Gov.
Davis signed Assembly Bill
1X giving the state authority to sign long-term contracts for electricity and float
about $10 billion of revenue bonds to cover expected losses in initial years of such
purchases. Gov. Davis announced $320 million of incentives to increase conservation by
homeowners and businesses.

Jan. 28:
California had its 13th consecutive day of Stage 3 alert.

Jan. 25:
Federal Reserve Chairman Alan Greenspan testifies before Congress that California's
electricity crisis threatens to undermine the country's economic expansion and says the
problem must be addressed "rather quickly." The San Francisco judge temporarily
blocks the California Power Exchange from seizing millions of dollars of PG&E's
assets. PG&E asked a federal judge in Oakland to issue an emergency order that would
let the utility raise rates beyond increases approved by the State Public Utility
Commission.

Jan. 23:
Energy Secretary Abraham extends the emergency order
requiring certain electricity suppliers to ship excess power to California. Bush
Administration officials, including Vice President Cheney and Secretary of Energy Abraham,
have stated that there will be no further extension, a position that Members briefed by
the White House have attributed also to President Bush.

Jan. 19: The
California Public Utilities Commission files a restraining order directing PG&E and
SCE to provide service to all their customers, even if they are forced into bankruptcy.
Gov. Davis signs an emergency bill granting the state authority to make large-scale
purchases of electricity. $400 million are allocated for power purchases, enough for
approximately one week's purchases. State Attorney General Bill Lockyer files a petition
with FERC seeking to block PG&E from shifting assets away from control of a Bankruptcy
Court if it is forced into such a filing.

Jan. 16: The
ISO declares a Stage 3 alert as several plants report a shortage of natural gas. Edison
tells federal regulators it doesn't have the money to pay $596 million it owes this week,
including $215 million to the California Power Exchange for wholesale-power purchases. The
exchange considers whether to make the utility buy its power elsewhere. Standard &
Poor's downgrades the credit ratings of SoCal Edison and PG&E to junk-bond status. The
Assembly considers a rescue plan to have the state buy electricity from wholesalers and
sell it to utilities at a reduced rate.

Jan. 15:
Power supplier Dynegy Inc. threatens to take SoCal Edison and PG&E to bankruptcy court
if they fail to make payments due this week.

Jan. 13:
State and federal officials resume talks with representatives of power companies. Under
the proposal that emerges, the Legislature would let the state buy electricity from
wholesalers and sell it to utilities at a reduced rate under long-term contracts.

Jan. 12: The
Assembly approves the two bills. Davis meets with the Oregon and Washington governors.
Other Western governors say California needs to build more power plants. FERC approves
PG&E's request for permission to restructure to insulate assets in the event of
bankruptcy.

Jan. 11: The
ISO declares a Stage 3 power alert, but stops short of ordering scattered blackouts. U.S.
Energy Secretary Bill Richardson extends an emergency order keeping power flowing to the
state after Davis submits a conservation plan. An Assembly committee approves bills to
shake up two power boards and require utilities to get state permission to sell power
plants. PG&E lays off 325 employees and says it will let another 675 go if its
finances do not improve.

Jan. 9: State
and federal officials meet for seven hours in Washington but find no solutions.

Jan. 8:Davis,
in his State of the State speech, proposes a public agency to build power plants,
threatens to seize the plants of wholesalers who gouge consumers and utilities and pledges
at least $1 billion in state funds to resolve the crisis.

Jan. 5: A
federal court in Washington rejects Edison's bid to force federal regulators to cap prices
on wholesale electricity. Edison announces it will cut 1,450 jobs over the next several
months.

Jan. 4: The
PUC approves emergency rate hikes of 9 percent for residential customers and 7 percent to
15 percent for businesses for Edison and PG&E.

Jan. 2: Davis
joins Edison's suit with a friend-of-the-court brief. He says the commission "has
failed in its responsibility to protect California from what the agency itself describes
as a dysfunctional market for electricity."

2000Dec. 26: Southern California Edison sues FERC,
alleging the government body failed to ensure that wholesale electricity is sold at
"just and reasonable" rates.

Dec. 15:The
Federal Energy Regulatory Commission approves a "soft" rate cap of $150 per
megawatt hour, but suppliers can charge utilities more if they can prove a higher price is
warranted. Davis had asked for a firm cap of $100 per megawatt hour. Wholesale prices on
this day ranged from $429 MWh to $565 MWh. As a comparison, on December 15, 1998,
wholesale prices ranged from $12 MWh to $29 MWh.

Dec. 7:For
the first time, the ISO declares a Stage 3 emergency when power reserves fall below 1.5
percent. Officials say conservation efforts averted rolling blackouts throughout the
state.

Sept. 7: The
state Public Utilities Commission approves the rate-averaging plan for San Diego
customers, which caps their rates for three years.

Sept. 6:
Davis signs two bills stemming from power crisis in San Diego. One would spread energy
price increases for San Diego customers over several years, the other speeds up the
approval process for new power plants.

Aug. 2: High
wholesale prices prompt Gov. Gray Davis to call for an investigation into "possible
manipulation in the wholesale electricity marketplace."

June 15:
Rolling blackouts in San Francisco affect hundreds of thousands. The blackouts are caused
by slim power supplies due to several Northern California power plants shut down for
maintenance.

May 22: The
California Independent System Operator declares the first of many Stage Two alerts, when
power reserves drop below 5 percent.

May:
SDG&E customers' bills double from an average residential bill of $49 to about $100 as
the utility passes on high wholesale costs to consumers. By mid-summer, those customers'
bills have tripled.

1999July:San Diego Gas & Electric is the first
California utility to deregulate, allowing it to lift the retail price cap.

1998Jan.: Deregulation bills approved by state lawmakers
take effect. Utilities begin taking steps to divest themselves of their generation plants.
Rates they can charge consumers are capped until the utilities complete that task.

1996Sept.: Gov. Pete Wilson signs legislation to open up
California's electricity market to competition. The bill was approved by the Legislature
with unanimous support.